Used Car sales in Cape Town are coming down.
Monday, July 7th, 2008It’s a really bad time for used car dealers in Cape Town, South Africa. Vehicle sales come down every day more and more, and car dealers are struggling to handle business and work out their costs.
First bad news for all car traders in South Africa was the "National Credit Act" 2 years ago, which cut off over 70 % of used car sales.
Practically over 90 % of all used cars in a dealers stock are property of a bank, and only 10 % of stock is real investment of used car dealers. Usually that amount contains only Cheap cars, and more expansive used vehicles are financed buy WesBank, ABSA Bank, Standard Bank or NedBank of South Africa.
The real hunting for payable costumers is beginning in Cape Town. Car dealers have increased their adverting budget at least 5 times, but they still did not reach the level of vehicle sales which was 2 years ago.
Second bad new for used car dealers in South Africa is "P2P vehicle finance" service from First National Bank, and ABSA Bank of South Africa.
That means that used car dealers lost again over 50 % costumers. Do you want to know why? It’s simple:
Over 80 % of potential costumers for < a href='http://vehicletraders.co.za' >used cars did not have the possibility to get vehicle finance from a bank for financing a vehicle which was bought from a private person. And only authorised car dealerships were able to assist financing a vehicle.
Practically the people did not have much choice and were ready to pay even double the market price, just to get assistance with vehicle finance from a dealer.
Now it’s gone - Let’s see what will happen next.
Used Car sales in Cape Town